Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

2. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table summarizes revenue from contracts with customers:

	Three Months Ended   June 30,					Six Months Ended   June 30,
thousands	2019		2018			2019			2018
Revenue from customers
Service revenues – fee based	$	593,544	$	431,861		$	1,173,518		$	825,634
Service revenues – product based	16,675		22,662			36,054			46,085
Product sales	74,469		64,687			147,269			149,555
Total revenue from customers	684,688		519,210			1,356,841			1,021,274
Revenue from other than customers
Net gains (losses) on commodity price swap agreements	—		(1,372		)	(667		)	(2,615		)
Other	366		240			763			473
Total revenues and other	$	685,054	$	518,078		$	1,356,937		$	1,019,132

 

Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $262.4 million and $214.3 million as of June 30, 2019, and December 31, 2018, respectively.

Contract assets primarily relate to accrued deficiency fees the Partnership expects to charge customers once the related performance periods are completed and revenue accrued but not yet billed under cost of service contracts with fixed and variable fees. The following table summarizes the current period activity related to contract assets from contracts with customers:

thousands
Balance at December 31, 2018	$	47,621
Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period	(1,574		)
Additional estimated revenues recognized	9,951
Balance at June 30, 2019	$	55,998
Contract assets at June 30, 2019
Other current assets	$	12,501
Other assets	43,497
Total contract assets from contracts with customers	$	55,998

2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED)

Contract liabilities primarily relate to (i) fees that are charged to customers for only a portion of the contract term and must be recognized as revenues over the expected period of customer benefit, (ii) fixed and variable fees under cost of service contracts that are received from customers for which revenue recognition is deferred and (iii) aid in construction payments received from customers that must be recognized over the expected period of customer benefit. The following table summarizes the current period activity related to contract liabilities from contracts with customers:

thousands
Balance at December 31, 2018	$	145,624
Cash received or receivable, excluding revenues recognized during the period	28,588
Revenues recognized that were included in the contract liability balance at the beginning of the period	(10,183		)
Balance at June 30, 2019	$	164,029
Contract liabilities at June 30, 2019
Accrued liabilities	$	6,620
Other liabilities	157,409
Total contract liabilities from contracts with customers	$	164,029

Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019, are reflected in the following table. The Partnership applies the optional exemptions in Topic 606 and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Therefore, the following table represents only a portion of expected future revenues from existing contracts as most future revenues from customers are dependent on future variable customer volumes and, in some cases, variable commodity prices for those volumes.

thousands
Remainder of 2019	$	380,239
2020	873,259
2021	912,081
2022	962,556
2023	918,095
Thereafter	4,340,666
Total	$	8,386,896